Neco Model Questions Vol1 2018 Commerce Question 25

Practice objective / multiple choice question 25 from the 2018 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 25 NECO_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A bank offers a 12‑month loan at a simple interest rate of \(15\%\) per annum and charges a processing fee equal to \(2\%\) of the loan principal, payable at the start. A borrower needs to receive net proceeds of exactly \(\text{₦}480\,000\) after the fee is deducted. What is the maximum loan principal the borrower should apply for, and what will be the total amount payable at the end of the year (principal + interest)?

Answer Options

Correct Answer A. Maximum principal ≈ ₦489,796; Total repayment ≈ ₦563,265
B. Maximum principal ≈ ₦475,000; Total repayment ≈ ₦553,750
C. Maximum principal ≈ ₦460,000; Total repayment ≈ ₦540,800
D. Maximum principal ≈ ₦500,000; Total repayment ≈ ₦575,000
Correct Answer
A
Correct Option:
Maximum principal ≈ ₦489,796; Total repayment ≈ ₦563,265

About This Question

This is Neco Model Questions Vol1 2018 Commerce Question 25. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

View More Neco Model Questions Vol1 2018 Commerce Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support